Economics

Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate. Labor Hours= 1 lb Lbs produced in 24hrs Pork. Tomatoes. Pork. Tomatoes F. 6. 3. 4. 8 R. 4. 4. 6. 6 Refer to Table 3-23. The opportunity cost of 1 pound of tomatoes for the rancher is a.) 1 pound of pork b.) 1 hour of labor c.) 1.5 pounds of pork d.) 1.5 hours of labor

A.) 1 pound of pork

Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate. Labor Hours= 1 lb Lbs produced in 24hrs Pork. Tomatoes. Pork. Tomatoes F. 6. 3. 4. 8 R. 4. 4. 6. 6 Refer to Table 3-23. The opportunity cost of 1 pound of pork for the rancher is a.) 1 pound of tomatoes b.) 1 hour of labor c.) 1.5 pounds of tomatoes d.) 1.5 hours of labor

A.) 1 pound of tomatoes

https://k-state.instructure.com/courses/51834/files/5687327/preview Refer to Figure 6-15. For a price ceiling to be binding in this market, it would have to be set at a.) any price below $3 b.) a price between $2 and $3 c.) a price between $3 and $4 d.) any price above $5

A.) any price below $3

If the government removes a binding price ceiling from a market, then the price paid by buyers will a.) increase, and the quantity sold in the market will increase. b.) increase, and the quantity sold in the market will decrease. c.) decrease, and the quantity sold in the market will increase. d.) decrease, and the quantity sold in the market will decrease.

A.) increase, and the quantity sold in the market will increase.

Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate. Labor Hours= 1 lb Lbs produced in 24hrs Pork. Tomatoes. Pork. Tomatoes F. 6. 3. 4. 8 R. 4. 4. 6. 6 Refer to Table 3-23. The rancher has a comparative advantage in the production of a.) pork b.) tomatoes c.) both goods d.) neither good

A.) pork

Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate. Labor Hours= 1 lb Lbs produced in 24hrs Pork. Tomatoes. Pork. Tomatoes F. 6. 3. 4. 8 R. 4. 4. 6. 6 Refer to Table 3-23. The rancher has an absolute advantage in the production of a.) pork b.) tomatoes c.) both goods d.) neither good

A.) pork

What will happen in the gasoline market now if buyers expect higher gasoline prices in the near future? a.) The demand for gasoline will increase. b.) The demand for gasoline will decrease. c.) The demand for gasoline will be unaffected. d.) The supply of gasoline will increase.

A.) the demand for gasoline will increase.

Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate. Labor Hours= 1 lb Lbs produced in 24hrs Pork. Tomatoes. Pork. Tomatoes F. 6. 3. 4. 8 R. 4. 4. 6. 6 Refer to Table 3-23. The farmer has a comparative advantage in the production of a.) pork. b.) tomatoes c.) both goods. d.) neither good

B.) tomatoes

Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate. Labor Hours= 1 lb Lbs produced in 24hrs Pork. Tomatoes. Pork. Tomatoes F. 6. 3. 4. 8 R. 4. 4. 6. 6 Refer to Table 3-23. The farmer has an absolute advantage in the production of a.) pork b.) tomatoes c.) both goods d.) neither good

B.) tomatoes

The opportunity cost of an item is a.) the number of hours needed to earn money to buy the item. b.) what you give up to get that item. c.) usually less than the dollar value of the item d.) the dollar value of the item.

B.) what you give up to get that item

Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate. Labor Hours= 1 lb Lbs produced in 24hrs Pork. Tomatoes. Pork. Tomatoes F. 6. 3. 4. 8 R. 4. 4. 6. 6 Refer to Table 3-23. The opportunity cost of 1 pound of pork for the farmer is a.) 1/2 pounds of tomatoes b.) 1/2 hour of labor c.) 2 pounds of tomatoes d.) 2 hours of labor

C.) 2 pounds of tomatoes

https://k-state.instructure.com/courses/51834/files/5609296/preview Refer to Figure 4-1. It is apparent from the figure that the a.) good is inferior b.) demand for the good decreases as income increases. c.) demand for the good conforms to the law of demand. d.) All of the above are correct.

C.) demand for the good conforms to the law of the demand

Tim decides to spend four hours playing video games rather than attending his classes. His opportunity cost of playing games is a.) the value of the knowledge he would have received had he attended his classes. b.) the $50 he could have earned if he had worked at his job for those four hours. c.) the value of his time playing video games minus the value of attending classes. d.) nothing, since he valued playing video games more than attending classes.

A.) the value of the knowledge he would have received had he attended his classes.

Consider Frank's decision to go to college. If he goes to college, he will spend $21,000 on tuition, $11,000 on room and board, and $1,800 on books. If he does not go to college, he will earn $16,000 working in a store and spend $7,200 on room and board. Frank's cost of going to college is a.) $33,800 b.) $42,600 c.) $49,800 d.) $57,000

B.) $42,600

Which of the following changes would not shift the demand curve for a good or service? a.) a change in income b.) a change in the price of the good or service c.) a change in expectations about the future price of the good or service d.) a change in the price of a related good or service

B.) a change in the price of the good or service

A higher price for batteries would result in a(n) a.) increase in the demand for flashlights. b.) decrease in the demand for flashlights. c.) increase in the demand for batteries. d.) decrease in the demand for batteries.

B.) decrease in the demand for the flashlights.

Which of the following events must cause equilibrium quantity to fall? a.) demand increases and supply decreases b.) demand and supply both decrease c.) demand decreases and supply increases d.) demand and supply both increase

B.) demand and supply both decrease

John is an athlete. He has $120 to spend and wants to buy either a heart rate monitor or new running shoes. Both the heart rate monitor and running shoes cost $120, so he can only buy one. This illustrates the principle that a.) trade can make everyone better off b.) people face trade-offs c.) rational people think at the margin d.) people respond to incentives

B.) people face trade-offs

https://k-state.instructure.com/courses/51834/files/5609299/preview Refer to Figure 4-14. Which of the following would explain a movement from E1 to E2? a.) There is an improvement in the technology used to produce this good. b.) The cost of an input to the production of this good increases. c.) This good becomes very popular. d.) The price of a substitute good decreases.

B.) the cost of an input to the production of this good increases

A rational decisionmaker a.) ignores marginal changes and focuses instead on the big picture. b.) ignores the likely effects of government policies when he or she makes choices. c.) takes an action only if the marginal benefit of that action exceeds the marginal cost of that action. d.) takes an action only if the combined benefits of that action and previous actions exceed the combined costs of that action and previous actions.

C.) takes an action only if the marginal benefit of that action exceeds the marginal cost of that action.

Increase in S. Decrease in S increase in d. A. B decrease in d. C. D Refer to Table 4-9. Which combination would produce a decrease in equilibrium quantity and an indeterminate change in equilibrium price? a.) A b.) B c.) C d.) D

D.) D

https://k-state.instructure.com/courses/51834/files/5687325/preview Refer to Figure 6-8. If the government imposes a price floor of $5 on this market, then there will be a.) no surplus of the good b.) a surplus of 5 units of the good. c.) a surplus of 10 units of the good. d.) a surplus of 15 units of the good.

D.) a surplus of 15 units of the good.

Which of the following is a decision that economists study? a.) how much people work b.) what people buy c.) how much people save d.) all of the above

D.) all of the above

Which of the following events would cause a movement upward and to the right along the supply curve for mangos? a.) The number of sellers of mangos increases b.) There is an advance in technology that reduces the cost of producing mangos. c.) The price of fertilizer decreases, and fertilizer is an input in the production of mangos. d.) The price of mangos rises

D.) the price of mangos rises

Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate. Labor Hours= 1 lb Lbs produced in 24hrs Pork. Tomatoes. Pork. Tomatoes F. 6. 3. 4. 8 R. 4. 4. 6. 6 Refer to Table 3-23. The farmer should specialize in the production of a.) pork and the rancher should specialize in the production of tomatoes. b.) tomatoes and the rancher should specialize in the production of pork. c.) both goods and the rancher should specialize in the production of neither good. d.) neither good and the rancher should specialize in the production of both goods.

b.) tomatoes and the rancher should specialize in the production of pork.